Arctic Oil & Gas - "Alaska 1, Norway 0"

MarineLink.com
Monday, August 05, 2013

 E&P costs have been increasing by 11% per annum for the last five years, according to Barclays Capital, and nowhere are they increasing faster than in remote and harsh offshore environments like Alaska’s OCS or Norway’s north Barents Sea.

The governments of Alaska and Norway have taken diametrically opposite courses. Alaska decreased its marginal tax on oil production from 85% to 35%, and BP promptly moved to add two new rigs to its Prudhoe Bay operations. By contrast, the Norwegian government has raised taxes on its oil industry, prompting Statoil to defer the Johan Castberg north Barents Sea project.

Although the Brent oil price has shown signs of life in recent days, we believe that exploration and production costs will continue to outpace oil price gains, just as they have for the last two years. Therefore, industry economics will remain under pressure. And if the costs of oil extraction are increasing, then governments sooner or later will have to appreciate that the value of reserves in the ground is falling. Far from being able to grow government take (including taxes, royalties and production sharing), the oil companies will increasingly be requiring direct or indirect tax cuts if production--and oil field services employment--is to be maintained.

Back in the Arctic, the State of Alaska seems to be catching on; Norway, less so. For now, Alaska 1, Norway 0.
 

 

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

Long Beach Port Celebrates Environmental Successes

Shipping lines, environmental organizations, trucking companies, terminal operators and a railroad were honored today, July 29, by Long Beach Mayor Dr. Robert

NAO Expedition to Study Walruses

From Naryan-Mar complex expedition started "Investigation Atlantic walrus habitat" for the study of animal southeastern Barents Sea. The expedition of seven

MOL Wins Eco Awards in California

Mitsui O.S.K. Lines, Ltd. earned recognition from the ports of both Los Angeles and Long Beach, California, today, for its efforts to ensure compliance with

Energy

Rolls-Royce Takes Davies on Board

Rolls-Royce today announces the appointment of Alan Davies as a Non-Executive Director. He will join the Board with effect from 1 November 2015 and will become

MOL Wins Eco Awards in California

Mitsui O.S.K. Lines, Ltd. earned recognition from the ports of both Los Angeles and Long Beach, California, today, for its efforts to ensure compliance with

WGMA Urges Participation in Menhaden Survey

The West Gulf Maritime Association (WGMA) is urging its members with ships arriving at any port in the western US Gulf to participate in the Menhaden survey.

News

Long Beach Port Celebrates Environmental Successes

Shipping lines, environmental organizations, trucking companies, terminal operators and a railroad were honored today, July 29, by Long Beach Mayor Dr. Robert

NAO Expedition to Study Walruses

From Naryan-Mar complex expedition started "Investigation Atlantic walrus habitat" for the study of animal southeastern Barents Sea. The expedition of seven

Korean Registry Okays Transas ECDIS

Transas, one of the world's leading providers of integrated navigation solutions, received ECDIS type-approval from the Korean Registry (Korea Marine Equipment Research Institute),

Government Update

Korean Registry Okays Transas ECDIS

Transas, one of the world's leading providers of integrated navigation solutions, received ECDIS type-approval from the Korean Registry (Korea Marine Equipment Research Institute),

Navy to Commission Submarine John Warner

The Navy will commission its newest fast attack submarine, the future USS John Warner (SSN 785), during a 10 a.m. EDT ceremony Saturday, Aug. 1, 2015, at Naval Station Norfolk,

WGMA Urges Participation in Menhaden Survey

The West Gulf Maritime Association (WGMA) is urging its members with ships arriving at any port in the western US Gulf to participate in the Menhaden survey.

Arctic Operations

NAO Expedition to Study Walruses

From Naryan-Mar complex expedition started "Investigation Atlantic walrus habitat" for the study of animal southeastern Barents Sea. The expedition of seven

Arctic Range of Liferafts Introduced

Ship operators working in polar regions can now equip vessels with liferafts from the SurvitecZodiac range that have been manufactured to meet Arctic operating conditions.

Oregon Bridge Danglers Hope to Delay Shell's Arctic Drilling

Protestors rappelled off a bridge in Portland, Oregon on Wednesday hoping to delay Royal Dutch Shell's Arctic oil exploration this summer by blocking the return

Offshore Energy

Mexico to Postpone Deep Water Auction

Mexico, which has started to open its nationalized oil industry to additional private investment, will postpone auctions for deep-water oil exploration and production

Oregon Bridge Danglers Hope to Delay Shell's Arctic Drilling

Protestors rappelled off a bridge in Portland, Oregon on Wednesday hoping to delay Royal Dutch Shell's Arctic oil exploration this summer by blocking the return

CWind Supports Ballast Nedam at Butendiek OWF

CWind, a provider of integrated services to the wind industry, announced today that it is providing corrosion protection services to Ballast Nedam at Butendiek Offshore Wind Farm (OWF).

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Offshore Oil Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2413 sec (4 req/sec)